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HomeMy WebLinkAbout20033168.tiff ��t Ma Mr. & Mrs. John R. Cox k 7aP tAlSY 16485 Ledyard Road South m y Platteville, CO 80651-9345 4114 August 6, 2003 Dear Weld County Commissioners, My wife and I purchased our property at Pelican Lake Ranch(PLR)while we were still living in Indianapolis in the summer of 2001. One of the many attractions that PLR offered was large lots, unlike any other development we cold find in this part of the state. At that time it was proposed by the development sales team that the time-line for growth in building new homes was such that it would be practical to add a number of amenities such as a pool, tennis courts, etc., sometime in the next two or three years. That was perfect for us because our construction would not start until Summer 2002 (it did) and we would be moving in the Spring of 2003 (we did). We had decided to move to Colorado to be near our children and grandchildren, and the expectation was that the variety of recreational opportunities at PLR and the timing of their availability would coincide with our relocation. These were large factors in our decision to build our home here. Even with what appears to be a postponement of the installation of some of these added features, we have never regretted our decision because of all the other positive factors about PLR. Milton Reservoir is a beautiful spot. Again, very large, with enormous potential for those of us who enjoy wildlife spotting, sailing or canoeing. The spaces around the development are so vast that traffic is not and probably never will be an issue, another big change over where we came from. The people who saw to the early infrastructure planning used exceptional foresight to ensure proper elevations to eliminate drainage and erosion problems, and to protect the environment. Again, this was not the case in Indiana. We believe the PLR project fits well nestled among our other rural neighbors beyond its borders, and that the continued steady growth of residents in the development will have a significant positive impact on the health of the business climate in the communities of Platteville, Fort Lupton, Gilcrest, LaSalle, Evans and Greel,Wit urge you to adopt the provisions of Filing 2. Sincerely, 2003-3168 �, �_ � G�O�p John R. and Linda Evan's" Cox Pelican Lake Ranch, Aug. 6, 2003 Hearing David Shupe, Consultant, Colorado P.E. 5914 cr I am an experienced soils engineer with nearly 40 years background in septic system design and use. In 1966, I served on the Colorado State Health Dept. committee which wrote the first State ISDS regulations. • The soils in this subdivision have been extensively investigated and found to be well- suited for on-site treatment prior to dispersal. They are highly uniform, and too porous for conventional disposal. O,-•o • The design system we have proposed provides treatment by subsurface sand filtration, one of the oldest and well-known treatment methods, prior to dispersal into the native soil. o The system type proposed has been reviewed by Weld County Health Department personnel, and meets current Weld County regulations. Individual system designs will be subject to County review and approval. o This proposal places design, installation and maintenance of each new system under the joint supervision of the Weld County Health Department and the Beebe Draw Metropolitan District. It will include all lots in Filing Two, and any currently unsold lots in Filing One, with provision for currently owned and/or developed lots to apply to the District to be included in the proposed maintenance program, should they so desire. • Ongoing maintenance, including field and tank inspection, pumping and groundwater bews quality monitoring is proposed to be provided by the Metropolitan District, and reported to the Weld County Health Department. The proposal also contains provision for the appropriate re-evaluation of any perceived system malfunctions. • Cost of the maintenance program as outlined will be included in the mil levy paid to the District by lot owners, according to the financial structure set forth in the District's Service Plan. An amendment to the Service Plan for this purpose has been prepared for action upon approval of this Filing. • To our knowledge, such a highly organized supervision and maintenance program for ISDS systems within a subdivision does not yet exist in Weld County, although such arrangements exist elsewhere in the country. o This proposal meets the requirements of the Weld County Health Department in b -as providing ongoing inspection, maintenance and monitoring. It far exceeds the level of care available to most households served by septic systems in the County. Delete the following items as they have been addressed: 1. Prior to Recording: (starting on page 3) B. The applicant shall be required to submit a Waste Handling Plan for each filing for the management of the equestrian trail, given that it was noted that the trails are on lands that are comprised of a fragile, highly erodible landscape. Further, the applicant shall provide additional information regarding maintenance and management of the amenity. J. The site shown as the mailbox shall be identified as a lot (page 6 of 72 form, Tract G). N. The applicant shall be required to submit a Re-vegetation Plan of all areas disturbed during construction. The plan shall include information regarding plant type, installation methods and maintenance. Y. A plan shall be developed to maintain roadways within the subdivisionPlanned Unit Development during inclement weather conditions for emergency vehicles. This plan shall be reviewed and approved by the Weld County Sheriff's Office. 2. The Plat shall be amended to include the following notes and modifications: (starting on page 6) E. The plat shall be modified to show a 25-foot utility easement associated within county road right-of-way. G. An additional 15-foot right-of-way adjacent to Weld County Road 39 shown on Filing 2 on the plat. H. The plat shall be modified to reflect the accepted typical cross section design. The plat shall be modified to reflect a minimum 50-foot radius from edge of pavement to edge of payment. K. The plat shall be modified to show a twenty-five (25) foot utility easement defined between Filing One and Filing Two of Beebe Draw Farms. L. The plat shall be modified to show an additional ten (10) foot right-of-way adjacent to Weld County Road 32. EXwarr 1 111/4 NEW ADDITIONS TO STAFF COMMENTS 1. Prior to recording the Plat: A. The applicant shall provide a deed or legal instrument identifying the correct legal for Tract F, comprised of 274 acres. - B. The applicant shall address the concerns of the Weld County Health Departments letter dated July 31, 2003, regarding placement of future septic systems C. All plats with the exceptions of the construction drawing will be recorded. J6 D. The Dockmaster house and associated users shall be added to the Amenities Plan. 2. The Plat shall be amended to include the following notes and modifications: j A. All plats shall be modified to show the dimensions of the oil and gas pipeline easements. B. All plats shall be redrawn at a 1:200 inch scale. \)i-- C. All plats shall be relabeled with the oil and gas set back circles using the same language. D. All plats shall be revised to show the correct number of acreages associated with Filing Two. E. All plats shall be revised to eliminate previous notes no longer valid on the plats. -l-' F. All plats shall be revised to show a consistent and legible legend. �y G. All plats shall reference any oil and gas encumbrances including set back rings, lines and future drill sites, and enlarged well area locations. 7 H. All plats shall be redrawn to identify the same oil and gas setback, and building envelope areas. All plats shall be redrawn to identify only one lot 394 J. The Wildlife Habitat buffers and setbacks shall be labeled and shall meet the requirements of the Environmental Assessment, dated December, 1996. K. No development associated with Beebe Draw or the Metropolitan District will occur in Section 15. L. Perimeter fencing of homesites or lots will be limited to a maximum of 5 percent of the total lot area adjacent to or around the main dwelling and parking areas. Up to an additional 5 percent of the lot area may be fenced or a corral or paddock. 2 M. Fifteen (15) trees shall be planted on each lot in accordance with the Environmental Assessment, dated December, 1996. N. Lots 2,3,9,10,12,22,24,30,46,60,63,67,89,103,104,106,107,113,114,115,116,117,119, 252,168,171,180,181,201,203, 204, 229, 230, 232, 246, 250, 253, 258, 265, 270, 272, 273, 274, 275, 276, 277, 281, 286, 308, 309, 310, 311, 312,_313, 314, 316, 317, 319, 320, 321, 322, 323, 324, 325, 328, 329, 330, 331, 333, 334, 335, 352, 359, 361, 371, 390, 391, 392, 393, 394, 395, 397, 398, 399, 400, 405, 406, and both the school and fire district lots are influenced by oil and gas activities and shall adhere to the conditions and standards of the Oil and Gas surface agreement signed effective August 1, 2003. O. Weld County will not take responsibility for inaccurately identified building envelopes. Prior to recording the JL Walters Plat Map: 1. The plat shall be redrawn to be legible in black and white. 2. The legend shall be relabeled to eliminate the word "proposed" in the landscape area, horse trail and detention ponds. 3. Use the same legend for all drainage areas. 4. Label all roadway maps. 5. Delineate all gas lines by symbol reference, and insert the word "well" in 150' future well drilling site radius. 6. Eliminate 100x100 (or maximized) possible building pad alternative. 7. Page 3 of 5. Identify the landscaped area in the open space across from lots 234 and 235, to be reviewed by the Department of Planning Services and applicant. 8. Page 4 of 5. The landscape in the cul-de-sac identified by lots 277 and 278 is incorrect and should be modified. 9. Page 4 of 5. The landscape identified by lots 304 and 305 is mislabeled. 10. Page 5 of 5. The landscape area by lots 278 and 308 needs relabeled. 11. Page 5 of 5. Lot 374 is identified with suggested relocation of line. Prior to recording the plat this issue shall be resolved by oil and gas company and applicant. 12. Page 5 of 5. Lot 375 is identified with suggested vacation. Prior to recording the plat this issue shall be resolved by oil and gas company and applicant. 13. Page 5 of 5. The buffer adjoining lots 320, 321, 322, 323, 324 and 325, is not consistent with buffer area as identified by the Landmark plats. Prior to recording this issue shall be resolved. 3 Prior to recording the Landmark Plat Map: 1. Page 4 of 12. Out lot A shall be identified as a landscape area. 2. Page 6 of 12. Out lot D shall be identified as a landscape area. 3. Page 6 of 12. The area adjacent to Lot 273 shall be identified as an out lot. 4. The roadway names are not compatible with the Weld County Address Ordinance as adopted by the Board of County Commissioners on June 24, 2003. Prior to recording, the correct address names shall be assigned, reviewed and approved by Weld County Planning. 5. Page 9 of 12. The detention ponds are not consistent with detention ponds as delineated on JL Walters map. Prior to recording this needs to be resolved. 6. Out lot E shall be identified as a landscape area. 7. Page 9 of 12. The future drill site as located in Tract Q shall be labeled. 8. Page 12 of 12. A legend and vicinity map need to be included to differentiate the proposed uses. Prior to release of Building Permits: 1. The applicant, developer shall conduct an identification survey for all lots identified within building envelopes, or identified with oil and gas uses. The applicants, developer shall be responsible for staking all established lot lines at the time of set back inspections. 4 Changes to be made to existing text under Prior to Recording: Page 3 G. Prior to recording the plat, Section 16, Township 3 North, Range 65 West of the 6th P.M., Weld County, Colorado, included in Amended Change of Zone #412, shall either be vacated by the Board of County Commissioners or an application to down zone to agricultural shall be received by the Weld County Department of Planning Services. the Metropolitan District shall be excluded from the Metropolitan District. No development associated with Beebe Draw or the District shall occur in Section 15. The peninsula in Section 15 will be a designated as a wildlife refuge with appropriate signage and limited access. Page 4 M. The applicant shall provide evidence of an agreement with the property's mineral owners in Section 4 stipulating that the oil and gas activities have been adequately incorporated into the design of the site to include future and existing well site locations, locations for associated oil and gas production equipment, pipeline easements and appropriately defined access roadways, and identify these on the plat. O. The applicant shall delineate on the Landscaping Plan, where the pop up heads will be utilized and where the soaker hoses will be utilized in all landscape areas. the type of irrigation systems to be utilized in the landscape areas. Page 5 Z. Evidence shall be submitted from the Platteville Fire District showing that the Fire District has approved the locations of Tthe fire hydrants located within the subdivisionPlanned Unit Development. Thoso locations shall be delineated on the plat. Development Standards Page 1 2. A permanent sign shall be placed inside the entry house to the subdivisionPlanned Unit Development detailing the name of the subdivisionPlanned Unit Development, address, and graphical presentation of the roadways within the subdivisionPlanned Unit Development. A plan shall be developed to maintain this sign. The sign shall be limited to size as defined in Section 42 of the Weld County Zoning Ordinance. Site Plan Standards Page 1 1. The applicant shall provide a Lighting Plan delineating all proposed lighting for the amenity area. This plan shall address security lighting in the public areas, including the RV and board storage area. Page 2 13. The picnic shelter area shall provide at a minimum, permanent vaulted restroom facilities. A vault facility similar to a State rest area or park service facility is recommended. Permanent restroom facilities with septic tank and absorption field, are required for public use at the stables. 14. All oil and gas facilities shall maintain appropriate land use setbacks in accordance with Bulk Requirements as established in the A (Agricultural) Zone District -the surface use agreement enter into by the applicant and oil and gas operations, with the exception of those as defined in Section 4. 5 SURFACE USE AGREEMENT THIS SURFACE USE AGREEMENT ("Agreement") is made and entered into this 30th day of July, 2003, by and among ANADARKO E&P COMPANY LP ("Anadarko E&P"), formerly known as RME Petroleum Company and Union Pacific Resources Company, ANADARKO LAND CORP. ("Anadarko Land"), formerly known as RME Land Corp. and Union Pacific Land Resources Corporation (together the "Anadarko Entities"), both with an address of Post Office Box 1330, Houston, Texas 77251-1330; KERR-MCGEE ROCKY MOUNTAIN CORPORATION ("Kerr-McGee") with an address of 1999 Broadway, Suite 3600, Denver, Colorado 80202, PATINA OIL & GAS CORPORATION (Patina Oil") and SOCO WATTENBERG CORPORATION ("SOCO") both with an address of 1625 Broadway, Suite 2000, Denver, Colorado 80202 (together "Patina"); Kerr-McGee, Patina, SOCO, and the Anadarko Entities are sometimes referred to hereinafter collectively as the "Oil Companies") and REI, LIMITED LIABILITY COMPANY ("REI") and BEEBE DRAW FARMS METROPOLITAN DISTRICT No. 2 ("District"), both with an address of c/o Gibraltar Equity Investments, LLC with an address of 3600 South Logan Street, Suite 200, Englewood, Colorado 80113 (REI and the District are sometimes referred to hereinafter together as "Surface Owner"). WHEREAS: A. Surface Owner owns the surface estate for certain property located in Weld County, Colorado, identified as the S/2; S/2N/2 and NE/4NE/4 of Section 5 and all of Sections 9 and 17, Township 3 North, Range 65 West, which is referred to hereinafter as the "Property." B. The Anadarko Entities own all of the minerals that underlie the Property. C. Anadarko E&P owns the oil, gas and associated liquid hydrocarbons that underlie the Property, and Anadarko Land owns all of the minerals (including coal) exclusive of oil, gas and associated liquid hydrocarbons under the Property, as well as a reversionary interest in the oil, gas and associated liquid hydrocarbons. D. Kerr-McGee and Patina each own certain oil and gas leasehold rights in various portions of the Property granted by Anadarko E&P or predecessor companies to Anadarko E&P. E. With respect to the portion of the Property in Section 5: Kerr-McGee owns certain oil and gas leasehold rights in the Section and operates seventeen wells located in the Section, two in the S/2NW/4, four in SW/4, five in the NE/4, and six in the SE/4. F. With respect to Section 9: (i) Kerr-McGee owns certain oil and gas leasehold rights in the Section and operates twelve wells located in the Section, two in the NW/4, six in the NE/4 and four in the SE/4; and (ii) Patina owns certain oil and gas leasehold rights in the Section and operates eight wells located in the Section, four in each of the NW/4 and SW/4. G. With respect to Section 17: (i) Kerr-McGee owns certain oil and gas leasehold rights in the Section and operates seven wells located in the Section, five in the NE/4 and two in EXHIBIT U the NW/4; and (ii) Patina owns certain oil and gas leasehold rights in the Section and operates twelve wells in the Section, four in each of the NW/4, SW/4 and SE/4. H. Current Colorado Oil and Gas Conservation Commission ("COGCC") rules and regulations allow the owners and/or lessees of the oil and gas for the Property to locate wells in a 400 foot square around the center of each quarter-quarter section and an 800 foot square around the center of each quarter section without obtaining approval for an exception location. I. Surface Owner plans to develop the surface of the Property as an equestrian center and for residential uses. J. The parties enter into this Agreement to provide for the coexistence and joint development of the surface estate and the oil and gas estate and to delineate the process with which they will comply with respect to the development of the two estates. K. This Agreement is limited to the compatible development of the surface estate and the oil and gas estate. It does not in any respect apply to the minerals other than the oil, gas and associated liquid hydrocarbons owned by Anadarko Land. NOW THEREFORE, in consideration of the covenants and mutual promises set forth in this Agreement, including in the recitals, the parties agree as follows: 1. Wellsite Locations. a. The Oil Companies shall drill and operate oil and/or gas wells only within the locations identified on Exhibit A as the 150' Well Radius ("Wellsite Locations"). The Wellsite Locations include the wellsites for the existing wells and also the four future Wellsite Locations for oil and gas wells to be located in the areas identified as Wellsite Locations in the SW/4SW/4 and the SW/4NE/4 of Section 5 and in the SW/4SW/4 of Section 9 and NE/4SW/4 of Section 17. The future Wellsite Locations are hereinafter referred to specifically as the "Future Wellsite Locations" and are included within the term "Wellsite Locations." b. Operations and uses at the Wellsite Locations include, but are not limited to, drilling, completion, and maintenance of wells and equipment, production operations, workovers, well recompletions and deepenings, fracturing, twinning and the drilling of replacement wells and the location of associated oil and gas production and drilling equipment. c. Each Wellsite Location shall include an area which is a circle with a radius of 150 feet as depicted on Exhibit A. d. The Oil Companies shall continue to have the right to drill additional wells and to install additional oil and gas equipment and facilities in each Wellsite Location and to deepen, recomplete or twin any well that is drilled or has been drilled. 2 2. Production Facility Locations. a. The Oil Companies shall locate, build, repair and maintain tanks, separators, dehydrators, compressors and all other associated oil and gas drilling and production equipment and facilities only within the Wellsite Locations and within the other locations depicted on Exhibit A as the 200' Separator or Battery Radius ("Production Facility Locations"). Each of the Oil Companies shall continue to have the right to operate and maintain all equipment that is currently installed on the Property and to install new or additional equipment within such locations, unless and until a particular Oil Company agrees to relocate such equipment in a separate agreement with Surface Owner. b. Each Production Facility Location shall include an area which is a circle with a radius of 200 feet as depicted on Exhibit A, centered on the facility. 3. The Oil and Gas Operation Areas, Wellsite Locations and Production Facility Locations and Uses Within the Areas and Locations. a. In addition to the areas within the Wellsite Locations and the Production Facility Locations, the Oil Companies shall continue to have the right to conduct oil and gas exploration and production operations in the areas identified on Exhibit A as the "Enlarged Well Areas" which are referred to hereinafter as the Oil and Gas Operations Areas. The rights of the Oil Companies to conduct oil and gas operations within the Wellsite Locations, Production Facility Locations and Oil and Gas Operations Areas shall be nonexclusive with respect to each other. b. Surface Owner may plat surface property lines within the Oil and Gas Operations Areas; however, no permanent building, structure, or other improvement shall be constructed or installed by Surface Owner within the Wellsite Locations, Production Facility Locations and Oil and Gas Operations Areas, except for the roads and detention ponds identified in Exhibit A. c. Surface Owner may not install or construct any temporary building, structure or other improvement within the Wellsite Locations except for the soft surface trails or horse trails identified in Exhibit A. d. Surface Owner may not install or construct any temporary building, structure or other improvement within the Production Facility Locations in the area that extends from such facility to a radius of 150 feet except for the soft surface trails, horse trails and landscaping identified in Exhibit A; however, Surface Owner may install or construct temporary buildings, structures or other improvements within the Production Facility Locations in the area that extends from the 200-foot perimeter of the Production Facility Location to 150 feet from the location of the production equipment and also within the Oil and Gas Operations Areas (other than the areas within the Wellsite Locations and the areas within the Production Facility Locations) with the approval of the applicable Oil Company. e. Subject to the prohibitions of Sections 3a through 3d above, Surface Owner may install or construct temporary structures or improvements within Future Wellsite Locations until such time as an Oil Company notifies Surface Owner that it intends to commence oil and gas 3 operations at the Future Wellsite Location. At the request of the Oil Company, Surface Owner shall remove such temporary structures and improvements within twenty days from the date it receives notification from the Oil Company at the cost and expense of Surface Owner. f. Except as otherwise provided in subsections 3.c., 3.d. and 3.e., the Oil and Gas Operations Areas shall be for the exclusive use of oil and gas operations and production. 4. Access to Oil and Gas Operations Areas. a. Surface Owner acknowledges and understands that the Oil Companies have the right to continue to use the access routes that they are currently using to access the Oil and Gas Operations Areas until and as they are replaced by the permanent access roads to and within the Oil and Gas Operations Areas, including the Future Wellsite Locations, that are identified on Exhibit A. Roads identified on Exhibit A and constructed by the Surface Owner for the general use of the public and Oil Companies within the Subdivision shall be referred to herein as "Subdivision Roads." Roads identified on Exhibit A as replacements for current Oil Company access routes, and restricted in their use to providing access to Oil and Gas Operations Areas, shall be referred to as "Permanent Access Routes." At such time as Surface Owner provides written notice to Oil Companies that it has begun surface development in the vicinity of any existing access route, and that it has constructed the Subdivision Roads designated in such notice, Oil Companies shall relocate the access roads designated in such notice. Thereafter, Oil Companies shall use only the Subdivision Roads and Permanent Access Routes identified in Exhibit A and specified in the notice to access their facilities. Surface Owner will construct and maintain Subdivision Roads, including curb cuts, turnouts, ditches, culverts and such other facilities as are necessary to give access from the Subdivision Roads to the Permanent Access Routes. Oil Companies shall construct and maintain the Permanent Access Routes referred to above at their expense. b. Construction and Width of Access Roads. (1) Subdivision Roads, access roads or portions of access roads that will be jointly used by the Oil Companies and Surface Owner shall be twenty-five (25) feet or more in width, and Surface Owner shall construct or improve all paved or improved joint access roads so as to withstand the weight of oilfield equipment. Specifically, Surface Owner shall construct the roads so that they can be used to withstand a minimum gross vehicle weight of 104,000 pounds and 26,000 pounds per axle. (2) Permanent Access Roads that are used exclusively by the Oil Companies shall be twenty-five (25) feet or more in width, and the Oil Companies shall install and maintain them to applicable state and local standards for oil and gas operations. (3) Access roads or portions of access roads that the Oil Companies are currently using to access the Oil and Gas Operations Areas and which will be used by Surface Owner for the subdivision shall be maintained by the applicable Oil Companies in accordance with state and local standards for oil and gas operations until such time as Surface Owner begins development of the Property in that area, after which time Surface 4 Owner shall keep such roads in good condition and repair until such roads are dedicated to the local jurisdiction. c. If an Oil Company causes damage to a road that is jointly used by both an Oil Company and the subdivision occupants and that was constructed according to the standards set forth herein, the applicable Oil Company agrees to promptly repair any damage which it causes which is a direct result of its use of the road. d. No party shall interfere with the use by the other of a Subdivision Road; provided however, that certain operations conducted by the Oil Companies which involve the use of a drilling or service rig or other heavy equipment may require that access be restricted to local traffic during limited periods along limited portions of a Subdivision Road, and Surface Owner agrees to restrict such access upon twenty days advance written notice from the Oil Company. e. Surface Owner shall plan, construct and install the subdivision and the infrastructure of the subdivision so as not to interfere with or delay the ongoing operations of the Oil Companies on the Property. 5. Pipelines, Flowlines and Easements. a. Surface Owner acknowledges and understands that the Oil Companies and their affiliates have the right to continue to use the flowlines, pipelines and pipeline easements that they are currently utilizing to service the existing wells at the Wellsite Locations and to construct, repair, maintain and replace such flowlines and pipelines. b. Existing flowlines and pipeline easements and flowlines and pipeline easements to be installed in the future are or shall be at the locations identified on Exhibit A. c. Surface Owner will take such measures when grading, contouring, scraping, building roads, or installing any infrastructure as are necessary to ensure that existing flowlines and pipelines remain no less than forty eight and no more than sixty inches below the ground surface. In the event that such activities would leave flowlines or pipelines less than forty eight or more than 60 inches below the surface, the applicable Oil Company may take such measures as are necessary to return flowlines or pipelines, as the case may be, to the correct depth. Such measures may include, but are not limited to, raising or lowering already installed pipelines and flowlines. The applicable Oil Company shall provide Surface Owner with a written estimate of the costs of such measures which Surface Owner shall thereafter promptly remit to the Oil Company. The payment shall be adjusted up or down upon completion of the work and after an itemized statement is provided to Surface Owner. d. Flowlines and pipelines to be installed in the future shall be installed at depths of approximately forty eight(48) inches below the surface of the ground. e. Locations of flowline and pipeline easements may be changed by mutual agreement of the applicable parties; provided, however, all costs and expenses of such relocations shall be borne by the party which requests the relocation. In the event that the parties agree to the 5 relocation of a pipeline or flowline, the applicable Oil Company shall provide Surface Owner with a written estimate of the relocation costs which Surface Owner shall thereafter promptly remit to the Oil Company. The payment shall be adjusted up or down upon completion of the work and after an itemized statement is provided to Surface Owner. i. Where existing flowlines and pipelines are located within the boundaries of existing easements that are deeded, described and recorded, the width of each such easement shall be as specified in the granting deed. If no width is specified in such granting deed, then easements for existing flowlines and pipelines shall extend ten feet beyond the vertical plane tangent to each side of each existing flowline or pipeline. ii. Where existing flowlines and pipelines are not located within the boundaries of existing deeded and described easements, Surface Owner shall grant, and does hereby grant, permanent exclusive easements extending ten feet beyond the vertical plane tangent to each side of each existing flowline or pipeline shown on Exhibit A. iii. Where multiple flowlines, pipelines or any combination of flowlines and pipelines are located within such proximity to one another that their easements encroach or overlap and are substantially parallel to one another, Surface Owner shall grant, and does hereby grant, a permanent exclusive easement extending ten feet beyond the vertical plane tangent to the outside walls of the outermost of such flowlines or pipelines. iv. Oil Companies have identified the anticipated locations of future flowlines and pipelines to be built on the Property. Surface Owner shall grant, and does hereby grant, to Oil Companies, their successors and assigns, a permanent exclusive easement for operation and maintenance of flowlines, pipelines and appurtenant equipment at the location shown on Exhibit A. The width of the designated future easements for flowlines and pipelines, and the constraints on their use, shall be in accordance with this Section 5. The width of such easements shall be expanded temporarily during construction of flowlines or pipelines, to fifty feet total width. Surface Owner shall not install or construct, or allow or cause to be installed or constructed, any source of ignition within 75 feet of an existing flowline or pipeline, or future easement facilities. No permanent building, structure or other improvement shall be constructed or installed within the boundaries of the easements affirmed or granted herein, except for the trails and landscaping areas identified in Exhibit A. v. All easements affirmed or granted in this Agreement shall be for the exclusive use of Oil Companies for the installation, operation, maintenance and repair of flowlines, pipelines, and appurtenant equipment that will be used to produce, gather, treat, transport or distribute oil, gas, liquid hydrocarbons, and water, whether treated or untreated. Oil Companies, their successors, assigns, affiliated companies, parent companies, and subsidiaries, may use any of the flowlines and pipelines located in the easements to produce, gather, transport or distribute oil, gas, liquid hydrocarbons, and water for themselves or for third parties, without regard to ownership or provenance of such substances. vi. Notwithstanding anything to the contrary expressed herein, and subject to Section 3 of this Agreement, Surface Owner, its successors and assigns, may use the surface of 6 the ground within the boundaries of the easements affirmed or granted in this Section 5 for recreational uses, open space uses, walking paths, soft surface equestrian trails, and similar temporary uses, provided that such uses do not interfere with Oil Companies use of or access to flowlines or pipelines located or to be located therein. f. Surface Owner may cross flowline or pipeline easements affirmed or granted herein to install, operate and maintain streets, curbs, gutters, sidewalks, utility service lines, cables or facilities, including those for water, gas, sewer, electricity, telephone, television, and fiber optics, provided that no such streets, curbs, gutters, sidewalks lines, cable or facilities shall interfere with Oil Companies use of the easements affirmed or granted herein, and provided further that 1) any such crossing shall be at substantially right angles to the easements affirmed or granted herein; 2) if any such streets, curbs, gutters, sidewalks lines, cables or facilities are laid substantially parallel to flowlines or pipelines, they shall be located at a minimum horizontal distance of ten feet from any flowline and fifteen feet from any pipeline; 3) any lines, cables or facilities that cross flowlines or pipelines shall be separated vertically by a minimum distance of twenty four inches; 4) any overhead power lines shall be not less than twenty feet above the ground. g. Within eighteen months following the effective date of this Agreement, Surface Owner shall execute such documents as are necessary to grant and record metes and bounds descriptions of the existing and future pipeline easements shown on Exhibit A to the applicable Oil Companies in a form prepared by Oil Companies that is consistent with the grant set forth above. h. Existing flowlines that are crossed or designed to be crossed by impermeable barriers installed by the Surface Owner (i.e. paved streets, parking lots, curbs, gutters and sidewalks) shall be removed and replaced or originally constructed with casing sleeves with risers at each end. The applicable Oil Company shall, in such event, provide Surface Owner with a written estimate of the relocation or replacement costs which Surface Owner shall thereafter promptly remit to the Oil Company. The payment shall be adjusted up or down upon completion of the work and after an itemized statement is provided to Surface Owner. Future flowlines that cross or are designed to cross existing impermeable barriers installed by Surface Owner shall be constructed with such casing sleeves with risers at the cost of the applicable Oil Company. 6. Subdivision Plat. Surface Owner shall identify the Wellsite Locations, Production Facility Locations, Oil and Gas Operations Areas, Subdivision Roads and Permanent Access Roads to the Wellsite Locations and Production Facility Locations on its subdivision plats and shall also use its best efforts to identify all existing access routes, pipelines, flowlines and pipeline easements on its subdivision plats, including the incorporation of information provided by the Oil Companies and available in the public records. The plats shall include restrictions that no permanent building, structure, or other improvement shall be located, constructed or installed within the Wellsite Locations, Production Facility Locations or Oil and Gas Operations Areas and that no temporary structure or improvement shall be constructed or installed within such locations or areas, except as otherwise provided herein in subsections 3.c., 3.d. and 3.e. Surface Owner shall record the subdivision plat in the Office of the Clerk and Recorder of Weld County and provide written notice to the Oil Companies within 15 days of recording. 7 7. Surface Damage Payments and Waiver of Surface Damage Payments. The applicable Oil Company agrees to pay Surface Owner the sum of Three Thousand Five Hundred Dollars ($3,500) for the first well hereafter drilled at a Future Wellsite Location on the Property. Such payments include settlement for the flowlines and surface facilities associated with the well. Surface Owner otherwise hereby waives all other surface damage payments pursuant to any COGCC or local regulation, state statute, common law or prior agreement covering all or portions of the Property for each and every well and related wellsite that is drilled, deepened, twinned or recompleted at a Wellsite Location. The Oil Companies or their lessees or their assignees may provide a copy of this Agreement to the COGCC as evidence of this waiver. This waiver of surface damage payments shall not apply to benefit a particular Oil Company, however, in the event that the Oil Company is in material breach of this Agreement, but only insofar as this Agreement affects such Oil Company. 8. Waiver of Setback Requirements. Surface Owner and Oil Companies understand and acknowledge that the COGCC and other governmental authorities have rules and regulations that apply to the distance between a wellhead and public roads, production facilities, building units and surface property lines, among other things. Surface Owner and Oil Companies hereby waive all setback requirements in COGCC Rule 603, or any successor rule or amendment to the COGCC setback rules, and to any other state or local setback requirements, or other requirements or regulations, that are or become inconsistent with this Agreement or that would prohibit or interfere with the rights of the Oil Companies or their lessees and assignees to explore for and produce the oil and gas in accordance with this Agreement. Surface Owner understands, and shall notify parties who purchase all or portions of the Property from Surface Owner, that Surface Owner or the Oil Companies may cite the waiver in this section 8 in order to obtain a location exception or variance under COGCC rules or from a local jurisdiction. Surface Owner also agrees that it will not object in any forum to the use by the Oil Companies of the surface of the Property consistent with this Agreement and that it will provide the Oil Companies with whatever written support they may reasonably require to obtain permits from the COGCC or a local jurisdiction. 9. Impact Mitigation. a. Except as may be otherwise provided in Exhibit B, Surface Owner shall bear all costs to install such noise and visual impact mitigation measures it desires or the County requires at or around the Wellsite Locations and Production Facility Locations which are in excess of or in addition to those measures which are required by COGCC regulations for areas that are not considered to be high density under COGCC rules and regulations; provided, however, that the operator of the well at a particular Wellsite Location or Production Facility Location shall have discretion to veto the mitigation measures proposed when those measures would compromise the safety of oil and gas operations. b. The parties shall comply with the provisions in Exhibit B with respect to the matters included in the Exhibit. 10. Compliance with State Regulations. The Oil Companies shall comply with the applicable rules and regulations of the COGCC in conducting their oil and gas operations on the 8 Property, including all requirements for notice of drilling and subsequent well operations and for the reclamation and plugging and abandonment of wells. This agreement to comply with such rules and regulations, however, shall not create a private right of action. 11. Notices of Hearings. a. Surface Owner shall provide the Oil Companies with written notice not less than thirty (30) days before each hearing for approval of a plat application or other land use application for the Property or portions of the Property that is to be held before the County. b. The Oil Companies shall provide Surface Owner with written notice not less than twenty (20) days before each COGCC hearing that specifically concerns their operations on the Property, not including hearings that apply generally to oil and gas operations on or in the vicinity of the Property. 12. Notice to Homeowners and Builders. REI or the District, as applicable, shall provide a copy of this Agreement to builders and developers which purchase all or any portion of the Property from Surface Owner, or either of them, and to all homeowners associations governing all or any portion of the Property. REI and the District shall also provide a copy of this Agreement and a statement to each person or entity who enters into a contract to purchase a lot from Surface Owner which is adjacent to, or any part of which is within, a Wellsite Location, a Production Facility Location or a flowline or pipeline easement that the surface estate and the mineral estate have been severed, that Surface Owner does not own the minerals and that specific locations have been reserved by the Oil Companies for existing and future oil and gas operations. 13. Release and Indemnity. a. Each party shall be and remain responsible for all liability for losses, claims, damages, demands, suits, causes of action, injuries to persons or property, fines, penalties, expenses and liabilities, including without limitation attorneys' fees and other costs associated therewith (all of the aforesaid herein referred to collectively as "Claims"), arising out of, caused by or connected with each such party's ownership or operations, including the acts or omissions of each such parties' agents, contractors, sub-contractors or other invitees on the Property. Each such party shall release, defend, indemnify and hold the other parties, their officers, directors, employees, successors and assigns, harmless against all such Claims that arise from its negligence or willful acts. This provision does not, and shall not be construed to, create any rights in persons or entities not a party to this Agreement, nor does it create any separate rights in parties to this Agreement other than the right to be indemnified for Claims as provided herein. b. The indemnities of any party herein shall not cover or include any amounts which the indemnified party may recoup from any third party, or for which the indemnified party is reimbursed by any third party. The indemnities in this Agreement shall not relieve any party from any obligations to third parties. c. If a Claim is asserted against a party for which another party would be liable under the provisions of this Section 13, it is a condition precedent to the indemnifying party's 9 obligations hereunder that the indemnified party give the indemnifying party written notice of such Claim setting forth all particulars of the Claim, as known by the indemnified party, including a copy of the Claim (if it is a written Claim). The indemnified party shall make a good faith effort to notify the indemnifying party within thirty (30) days of its discovery of a Claim or within such time as will allow the indemnifying party to defend against such Claim. 14. Governmental Proceedings. a. Surface Owner will not object in any forum to the use by the Oil Companies of the surface of the Property consistent with this Agreement and hereby waives any such right to object. Surface Owner shall provide to the Oil Companies such written approvals and waivers which are reasonably requested and consistent with this Agreement, including, but not limited to, all approvals and waivers to drill a well or to conduct oil and gas operations on the Property because of any law or regulation, including any local ordinance and regulations of the COGCC, and including, for example, waivers to state and local setback requirements and to any setback requirement from a surface property line or for an exception location. Surface Owner shall not directly or indirectly oppose or encourage opposition to any Oil Company in any agency, administrative body, county or other state or local proceeding relating to the operations of the Oil Companies on the Property; provided that the Oil Companies' position in such proceeding is consistent with this Agreement. This shall not preclude Surface Owner from participating and offering comments in any proceeding that pertains generally to oil and gas operations or surface use. b. The Oil Companies will not object in any forum to a request by Surface Owner to use, annex, zone, rezone, plat or replat all or any portion of the Property to the extent such request is consistent with this Agreement. The Oil Companies shall provide to Surface Owner such written waivers which are reasonably requested and consistent with this Agreement, including to the approval of the Filing II subdivision without the imposition of any conditions other than compliance with this Agreement. The Oil Companies shall not directly or indirectly oppose or encourage opposition to Surface Owner in any agency, administrative body, county or other state or local proceeding relating to Surface Owner's operations and development of the Property; provided that Surface Owner's position in such proceeding is consistent with this Agreement. This shall not preclude the Oil Companies from participating and offering comments in any proceeding that pertains generally to surface development and use. 15. Individual Liability. The liability of the Oil Companies and of Surface Owner to perform any covenant hereunder is individual and not joint or collective. Nothing in this Agreement is intended to enlarge or diminish any right or obligation created by any agreement or lease or assignment of lease between Kerr-McGee or Patina or their predecessors and the Anadarko Entities or their predecessors. The Anadarko Entities shall in no event be liable for the acts or omissions of their farmoutees, lessees or assignees of such parties. 16. Authority to Execute Agreement. Each party represents that it has the full right and authority to enter into this Agreement with respect to the surface rights, oil and gas interests, or oil and gas leasehold interests it owns in the Property, as applicable. 10 17. Successors and Assigns. This Agreement and all of the covenants in it shall be binding upon the personal representatives, heirs, successors and assigns of all of the parties, and the benefits of this Agreement shall inure to their personal representatives, heirs, successors and assigns. This Agreement and all of the covenants in it shall be covenants running with the land. 18. Recording. The Oil Companies shall record this Agreement with the Clerk and Recorder of Weld County and provide evidence to Surface Owner of the recording. 19. Governing Law. The validity, interpretation and performance of this Agreement shall be governed and construed in accordance with the laws of the State of Colorado without reference to its conflicts of laws provisions. 20. Severability. If any part of this Agreement is found to be in conflict with applicable laws, such part shall be inoperative, null and void insofar as it conflicts with such laws; however, the remainder of this Agreement shall be in full force and effect. In the event that any part of this Agreement would otherwise be unenforceable or in conflict with applicable laws due to the term or period for which such part is in effect, the term or period for which such part of this Agreement shall be in effect shall be limited to the longest period allowable which does not cause such part to be unenforceable or in conflict with applicable laws. 21. Notices. Any notice or communication required or permitted by this Agreement shall be given in writing either by (a) personal delivery; (b) expedited delivery service with proof of delivery; (c) United States mail, postage prepaid, and registered or certified mail with return receipt requested; or (d) prepaid telecopy or fax, the receipt of which shall be acknowledged, addressed as follows: Anadarko E&P and Anadarko E & P Company LP Anadarko Land: Attn: Development Land Manager—U.S. North P.O. Box 1330 Houston, Texas 77251-1330 Kerr-McGee: Kerr-McGee Rocky Mountain Corporation Attn: Director of Lands, Denver Basin 1999 Broadway, Suite 3600 Denver, Colorado 80202 Patina: Patina Oil & Gas Corporation/SOCO Wattenberg Corporation Attn: Land Manager 1625 Broadway, Suite 2000 Denver, Colorado 80202 Surface Owner: REI, Limited Liability Company c/o Gibraltar Equity Investments, LLC Beebe Draw Farms Metropolitan District 3600 South Logan Street, Suite 200 11 Englewood, Colorado 80113 Notices shall be effective upon receipt and any party may change an address by notice to the other parties. 22. Incorporation by Reference. Exhibits A and B are incorporated into this Agreement by this reference. 23. Entire Agreement. a. This Agreement sets forth the entire understanding among the parties and supersedes any previous communications, representations or agreements, whether oral or written, regarding the matters addressed herein, including, but not limited to (a) Surface Usage Agreement dated April 16, 1990, among Union Pacific Resources Company, Amoco Production Company, Beebe Draw Farms Ltd., and Beebe Draw Farms and Equestrian Center Property Owners Association and (b) Letter Agreement dated August 11, 1993, between Beebe Draw Farms Ltd., Beebe Draw Farms and Equestrian Center Property Owners Association and Elk Exploration, Inc. No change of any of the terms or conditions herein shall be valid or binding on any party unless in writing and signed by an authorized representative of each party. b. Surface Owner and Patina agree that the terms and conditions of this Agreement shall apply equally to Patina's and Surface Owner's respective interests in Section 4, Township 3 North, Range 65 West as shown on Exhibit "A". c. In the event of a conflict between this Agreement and any prior agreements between surface owner or its predecessors and Patina or its predecessors including any surface use agreements or surface damage agreements, this Agreement shall control. 24. Effective Date. This Agreement shall become effective and binding on the parties upon final approval of the Master Plat for Beebe Draw Metropolitan District Filing Two by the Weld County Commissioners. 25. Counterpart Executions. This Agreement may be executed in counterparts, each of which shall be deemed an original. 12 Exhibit B To Surface Use Agreement dated /' 4g among Anadarko E&P Company, LP, Anadarko Land Corp., Kerr-McGee Rocky Mountain Corporation, Patina Oil & Corporation, Beebe Draw Farms Metropolitan District and REI Limited Liability Company 1. All lands disturbed by Oil Companies shall be restored, recontoured and reseeded in accordance with all applicable laws and regulations. Reseeding of disturbed areas shall be performed during the first appropriate season, using a blend of grasses approved by the Oil and Gas Conservation Commission for such use. 2. With respect to the drilling of wells and the installation of flowlines and other associated oil and gas equipment at Future Wellsite Locations, the applicable Oil Company shall use commercially reasonable efforts to locate such flowlines and associated equipment in a manner that does not unnecessarily or unreasonably disturb the surface or create unnecessary or unreasonable visual impact to adjacent lands. 3. The Oil Companies shall install low-profile tanks, where reasonably feasible, to service Future Wellsites. Overhead vent line piping shall not extend beyond the diameter of such tanks; stairs shall be kept within the face of the tank profile. 4. At all times the Wellsites and the Oil and Gas Operations Areas shall be kept in a clean and orderly manner free of debris and excess materials, supplies and equipment derived from Oil Company operations, and shall be kept reasonably free of noxious weeds and undesirable species. Debris and waste materials shall be removed promptly after use. 5. Pipelines outside of Oil and Gas Operations areas shall be buried at a depth between forty- eight and sixty inches below the surface. Appropriate markers shall be installed and maintained outside of Oil and Gas Operation Areas. 6. The Oil Companies shall install, at their cost, such fencing as is required by the Oil and Gas Conservation Commission under its applicable rules. The Oil Companies shall install additional fencing when requested to do so by the Surface Owner, at the Surface Owner's expense. IN WITNESS WHEREOF, the undersigned parties have caused this Agreement to be executed by a duly authorized representative on the date and year first above written. KERR-McGEE ROCKY ANADARKO E&P COMPANY LP MOUNTAIN CORPORATION . By: By: Name: AMES ' AS Name: Its: •ttomey-in- act Its: ANADARKO LAND CORP. By: Name: Its: PATINA OIL & GAS CORPORATION SOCO WATTENBERG CORPORATION By: Name: TERRY RUBY By: Vice Name: TERRY RUBY Its: Vice President Its: President 13 BEEBE DRAW FARMS METROPOLITAN REI, LIMITED LIABILITY COMPANY DISTRICT No.2 Name: C.ht 5ti1a l-tS-ik(oc(c Name: C).--“, s1 ?nom i4.6-hceck . . •.•.•. . Its: Pre. S:etmt Its: Mtane comer ~ .. ACKNOWLEDGMENTS STATE OF COLORADO ) ) ss. COUNTY OF A_ PH+to£ ) The foregoing instrument was acknowledged before me this 'I-"- day of A UGusr 2003, by (; N2t5i In.7i, uerH(de cK as [-1A1 €4G£c for REI, Limited Liability Company. My Commission expires: to .2 1 1 < 7 O(0 Witness my hand and official seal. otar} u STATE OF COLORADO ) ss. COUNTY OFA gel PA N- ) The foregoing instrument was acknowledged before me this 1- — x" lay of,LY X2003, by0-F(2_ts;t •.94 i-4 e asZPRFSIne.t) for Beebe Draw Farms Metropolitan District/No. 2. My Commission expires: a O_ [ / 51O3 Witness my hand and official seal. otar Publ'c 14 STATE OF COLORADO ) CITY AND ) ss. COUNTY OF DENVER ) The foregoing instrument was acknowledged before me this 30th day of July , 2003, by JAMES P. WASON as Attorney-in-Fact for Kerr-McGee Rocky Mountain Corporation. ,'n expires: 'G ••01A .• j n ' Witness my hand and official seal. • ; N9A&BL`G• p�'` CyLL1/4„\ \ - % FpF•***** = Notary Public Ily Commission ExplrN 03241200$ STATE OF COLORADO ) ) ss. CITY & COUNTY OF DENVER ) The foregoing instrument was acknowledged before me this 30th day of July, 2003, by Terry Ruby as Vice President for Patina Oil & Gas Corporation. My Commission expires: Witness my hand and official seal. Notary Public 16 IN WITNESS WHEREOF, the undersigned parties have caused this Agreement to be executed by a duly authorized representative on the date and year first above written. KERR-McGEE ROCKY ANADARKO E&P COMPANY LP MOUNTAIN CORPORATION By: By: Name: JAMES P. WASON Name: Its: Attorney-in-Fact Its: ANADARKO LAND CORP. By: Name: Its: PATINA OIL & GAS CORPORATION SOCO WATTENBERG CORPORATION By: /t By: /4(240 Name: ERR R BY Name: TE Y RUBY Its: Vice President Its: Vice President 13 STATE OF COLORADO ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of 2003, by JAMES P. WASON as Attorney-in-Fact for Kerr-McGee Rocky Mountain Corporation. My Commission expires: Witness my hand and official seal. Notary Public STATE OF COLORADO ) ) ss. CITY & COUNTY OF DENVER ) The foregoing instrument was acknowledged before me this 30`s day of July, 2003,by Terry Ruby as Vice President for Patina Oil & Gas Corporation. My Commission expires: '2/ priv y fi`Y v3 Witness my hand and official seal. P1 p o • ty, .� csA cat s Notary Public t1/44% QO R COLOp`PI 16 STATE OF COLORADO ss. CITY & COUNTY OF DENVER ) The foregoing instrument was acknowledged before me this 30th day of July, 2003,by Terry Ruby Vice President for SOCO Wattenberg Corporation. My Commission expires: •?Jq Witness my hand and official seal. 9 f y 9'12I'j Notary Public t • • c OR A�� 17 IN WITNESS WHEREOF, the undersigned parties have caused this Agreement to be executed by a duly authorized representative on the date and year first above written. KERR-McGEE ROCKY ANADARKO E&P COMPANY LP MOUNTAIN CORPORATION By: By: Name: JAMES P. WASON Name: RORFRTM McCOMMON JR. Its: Attorney-in-Fact Its: Attomev-In-Fad ANADARKO LAND CORP. air By:Name: ROBERT M.McCOMMON,JR. Its: Attorney-In-Fact PATINA OIL & GAS CORPORATION SOCO WATTENBERG CORPORATION By: By: Name: DAVID W. SIPLE Name: DAVID W. SIPLE Its: Vice President Its: Vice President 13 STATE OF TEXAS ) ) ss. COUNTY OF MONTGOMERY ) , Theforegoing instrument was acknowledged before me this,7 0 d4fJfor 2003, by q_lLdr� i%7. 1)9e/' Ut^t-C/. A: as f .E2 _ Anadarko &P Company LP. ✓ i My Commission expires: 5 -/7-- TO Uj Witness my hand and official seaL k ta•°�o, REGINA WHITE ; .k� l�/ ZJ NOTARY PUBLIC.STATE OF TEXAS �, w MY COMMISSION EXPIRES 1 L �� EOF�E4 MARCH 11,2005 p�D,(/l 'J Ly blic STATE OF TEXAS ) ) ss. COUNTY OF MONTGOMERY ) The fore oing instrument was acknowledged before me this9 0 day of 2 2003, by 99y eytt 717 S;7eP, „ ;max . as n,G li-tn-d ---(--"ill 44, for Anadarko Land Corp. My Commission expires: 5 '// — , a a< Witness my hand and official seaL o�aYE�, REGINA WHITE ,, T'� ///{/�q' /�J� 1 x i NOTARY PUBLIC,STATE OF TEXAS, `,� � . /-„� a m MY COMMISSION EXPIRES k 15-,„, E}' MARCH 11, 2005 1 Notary P lic 15 Hello